Do you sometimes look at your electricity bill and wonder just why the cost is so high? You certainly aren’t alone. A lot of people in Texas wonder the same thing and want to know exactly what they are paying for in their bills. You will find that there are several reasons that you could have high delivery charges that you did not expect.
To get a better understanding of the charges, you will need to have a better understanding of what your transmission and distribution utility is charging for and why.
You have full control over choosing the Texas electricity company that’s right for you, so you can get the rates and the plan that’s right for you. However, the Transmission Distribution Service Provider charges are mandatory.
These are fees that are connected to the servicing and delivery of electricity to your meter from the source. The company that is in charge of the delivery is typically called a Transmission and Distribution utility. To understand how your charges are calculated and why they might be so high, you will first need to get a better idea of what the TDSP is and how it works.
For starters, you might see these charges under a wide range of names. Sometimes, they are called TDSP charges, but they could also be called TDU charges, pole and wire charges, or pass-through charges.
In Texas, many companies provide electric transmission services. They include CenterPoint, ONCOR, TNMP, AEPN, and AEPC. Different companies have different service areas in Texas. You can choose different providers, but when it comes to the TDSP companies, you will have to choose the one in your area.
These companies are the ones that own, operate, and maintain power lines and meters. The TDU companies are responsible for making sure the meters, wires, po9les, and all of the other equipment remain in good working order.
How Are the Fees for Deliver Determined?
Typically, the fees will be based on your meter’s peak demand. Although there may be fixed costs with the TDSP charges, high demands could cause an increase in your delivery charges.
You will notice differences in the TDSP charges in your electric bill two times per year in most cases. This is because the Public Utilities Commission of Texas makes changes to the delivery charges. These occur in March and September. They are seasonal changes, and they normally have the fees go up in September and down again in March.
You need to keep in mind that these fees are tariff-based, and they are approved by the Public Utilities Commission of Texas. The charges include the cost of delivering electricity to your address, as well as reading your meter, and taking care of emergencies and outages.
You can’t get around the TDSP delivery charges. The energy providers are billed after the monthly assessment of the delivery charges. The cost of those charges will be the same no matter who you are using as your electricity provider. You can’t save money on these charges by looking for a different provider, as they are going to be the same for all customers based on classification.
Some delivery charges are billed monthly, and others will be billed per kilowatt-hour. Because of this, the cost of delivering electricity is going to vary from one month to the next based on how much energy you are using. The more electricity usage the higher your monthly bill will be.
Why It Can Be Confusing
Although the basics of the TDSP charges are relatively easy to understand because they happen for everyone, a lot of customers find them confusing. This is because of how they are presented on the electric bill. Sometimes, they are lumped together with the energy charge, which is the cost to produce the electricity. You can always look at the electricity facts label on your current plan to see how you are being charged, which can clear things up and make it easier for you to find your charges on your electric bills.
Do You Notice a Major Spike in the Delivery Charges?
Have you found that there is now a big increase in the TDSP charges you are seeing on your electric bills? Let’s look at a couple of the most common reasons for the increase in price from the transportation distribution service provider aside from the normal changes and increases that happen.
This is something that could be costing you a lot more on your monthly electric bill than you might be aware of. While the meters tend to be reliable and accurate, there is the potential for a problem with the meter. As this is the final delivery point that measures the amount of energy you use, it should be reliable as a means to determine your costs. If it’s not working right though, it might mean you are paying more for delivery even if you are using the same or less energy than normal.
If you aren’t sure if your meter is working correctly, you should get a representative from your retail electric provider to come and check it out. In some cases, it might need to be replaced.
Markups by the Retail Electricity Provider
Sometimes, you simply can’t trust everything your electricity provider says. They could be marking up the costs before passing the bill on to you. They simply keep the excess money. Of course, you will find that this is not a common practice for a utility company that has a good reputation. Just keep in mind that the energy industry doesn’t always have reputable companies.
If you are worried that your utility company might be hiking your bill and making you pay extra in “delivery charges”, it could be time to seek out a different company. You can have a different company analyze your bill and check to see if the fees are correct or if the company is trying to take advantage by increasing charges for delivering power.
It is completely legal for the utility providers to mark up those charges, so they aren’t going to get in trouble for doing so. However, they are required to disclose this information about the markup in the EFL. Many people don’t notice this, though, and can’t figure out why they have such a high electric bill.
Those who find that their current utility provider is increasing these delivery costs, and who may also have higher energy charges might want to look into the benefits of working with a different provider.
Remember, you have a lot of freedom in Texas when it comes to choosing a new utility provider for your electricity. If you are nearing the expiration of your contract, you can start to shop around for other companies that will keep your demand charges normal, and that provide you with a better electricity rate.
Keeping Your Other Costs Down
While you can’t eliminate the delivery and transmission charges, you can do some other things that could help you keep your costs down and to reduce your energy use. Be aware of the things that can cause your total cost to go up.
For example, when there are higher demands for power and when you are using your major appliances or air conditioning, your overall costs for energy are going to rise. You should find some ways to reduce how much energy you are using. For example, don’t run the AC as often. Don’t run those appliances during peak hours of the day.
Little changes that you make in your life and your home can help you to reduce the overall cost of what you are paying. Things like using less hot water, putting the clothes out to dry on a clothesline instead of in the dryer, and using fans instead of the AC will all help to keep your overall costs down.